State aid: Commission approves €7.4
million investment aid to Pirelli for tyre plant in Piemonte,
Italy

The European Commission has authorised, under the
EC Treaty’s rules on state aid, €7.4 million of aid to Pirelli
Industrie Pneumatici S.r.l. (Pirelli Tyre S.p.A.) for an initial investment
project in Settimo Torinese. The project is aimed at extending the existing
plant of Pirelli and introducing new innovative products. The investment should
safeguard 900 jobs and facilitate the creation of a pole for innovation and
production in the area. The project is in line with EU Regional Aid Guidelines
(see IP/05/1653)
because it will contribute to regional development without unduly distorting
competition.

EU Competition Commissioner Neelie Kroes underlined that "this relatively
small amount of aid should help secure more than 900 jobs in an assisted region
and contribute to the creation of a centre of excellence for the development and
manufacture of high quality specialist tyres".

The project, which should be finalised by 2010, consists of extending the
existing Pirelli plant and in regrouping Pirelli's activities from two different
facilities located in the same area. The new plant will produce highly
innovative tyres mostly for super cars and luxury cars.

The Commission concluded that the aid was in line with EU Regional Aid
Guidelines, because its positive contributions to regional development clearly
outweigh any potential distortions of competition. In particular, 900 jobs are
expected to be maintained due to the investment and the plant should attract
different research and development projects to be carried out in association
with Politecnico di Torino and thereby contribute to the establishment of a pole
for innovation and technology in the area.

The non-confidential version of the decision will be made available under the
case numberNN
381/2008 in the State Aid
Register on the DG
Competition website once any confidentiality issues have been resolved. New
publications of state aid decisions on the internet and in the Official Journal
are listed in the State Aid
Weekly e-News.